Gartner says worldwide server revenue grew 7.5 percent in Q3 2015

by | Dec 10, 2015

Server shipments increased by 9.2 percent

Mumbai, December 2, 2015 — In the third quarter of 2015, worldwide server shipments grew 9.2 percent from the third quarter of 2014, while vendor revenue increased 7.5 percent year over year.

“The third quarter of 2015 produced growth on a global level with mixed results by region,” said Jeffrey Hewitt, research vice president at Gartner. “All regions showed growth in both shipments and vendor revenue, except for Eastern Europe, Japan and Latin America, which posted revenue declines of 5.8 percent, 11.7 percent and 24.2 percent, respectively, for the period. Currency exchange rates are one of the main reasons for the disparity in regional server market performance.”

From the regional standpoint, Asia/Pacific grew the most in shipments, with a 23.8 percent increase. The region also posted the highest vendor revenue growth at 25.4 percent for the period.

HP continued to lead the worldwide server market based on revenue (see Table 1). The company posted just over $3.7 billion in server vendor revenue for a total market share of 27.3 percent for the third quarter of 2015.

All of the top five global vendors had revenue increases for the third quarter of 2015, except for IBM with a decline of 42.8 percent. IBM’s decline is due primarily to its sale of its x86 server business to Lenovo. Beyond that, IBM’s server revenue fell 3.1 percent for the RISC segment, but grew 15 percent for mainframes to post a 5.1 percent total growth in the third quarter for the server businesses that it retained.

Table 1
Worldwide Server Vendor Revenue Estimates, 3Q15 (U.S. Dollars)

Company 3Q15

Revenue

3Q15 Market Share (%) 3Q14

Revenue

3Q14 Market Share (%) 3Q15-3Q14 Growth (%)
HP 3,682,417,477 27.3 3,374,559,864 26.9 9.1
Dell 2,419,231,403 17.9 2,219,989,943 17.7 9.0
IBM 1,327,761,197 9.8 2,322,409,499 18.5 -42.8
Lenovo 1,065,664,119 7.9 165,166,098 1.3 545.2
Cisco 885,600,000 6.6 783,760,000 6.2 13.0
Others 4,120,053,348 30.5 3,690,687,782 29.4 11.6
Total Market 13,500,727,544 100.0 12,556,573,186 100.0 7.5

Source: Gartner (December 2015)

In server shipments, HP remained the worldwide leader in the third quarter of 2015 with a year-over-year shipment increase of 7.7 percent (see Table 2). HP’s worldwide server shipment market share was 22.2 percent, virtually the same share as in the third quarter of 2014.

All of the top five vendors in server shipments worldwide produced shipment increases in the third quarter of 2015, with Lenovo recording the largest growth of 183.2 percent.

Table 2
Worldwide: Server Vendor Shipments Estimates, 3Q15 (Units)

Company 3Q15

Shipments

3Q15 Market Share (%) 3Q14

Shipments

3Q14 Market Share (%) 3Q15-2Q14 Growth (%)
HP 613,101 22.2 569,426 22.5 7.7
Dell 501,262 18.1 490,752 19.4 2.1
Lenovo 242,005 8.8 85,443 3.4 183.2
Huawei 134,163 4.9 93,421 3.7 43.6
Inspur 99,417 3.6 91,244 3.6 9.0
Others 1,172,725 42.4 1,200,592 47.4 -2.3
Total Market 2,762,672 100.0 2,530,878 100.0 9.2

Source: Gartner (December 2015)

Mr. Hewitt said, “x86 servers managed to produce an increase with growth of 9.2 percent in shipments and 9.7 percent in revenue year over year. RISC/Itanium Unix server revenue declined 11.5 percent in the third quarter, while shipments grew 1.1 percent. The ‘other’ CPU category, which is primarily mainframes, showed an increase of 3.5 percent in terms of revenue.”

Additional information is available to subscribers of the Gartner Servers Quarterly Statistics Worldwide program. This program provides worldwide market size and share data by vendor revenue and unit shipments. Segments include: region, vendor, vendor brand, sub brand, CPU type, CPU group, max CPU, platform, price band, operating systems and distribution channels.

About Gartner

Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S., and has 7,100 associates, including more than 1,500 research analysts and consultants, and clients in 90 countries. For more information, visit gartner.com.

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Brian Pereira
Brian Pereira
Brian Pereira is an Indian journalist and editor based in Mumbai. He founded Digital Creed in 2015. A technology buff, former computer instructor, and software developer, Brian has 29 years of journalism experience (since 1994). Brian is the former Editor of CHIP India, InformationWeek India and CISO Mag. He has served India's leading newspaper groups: The Times of India and The Indian Express. Presently, he serves the Information Security Media Group, as Sr. Director, Editorial. You'll find his most current work on CIO Inc. During his career he wrote (and continues to write) 5000+ technology articles. He conducted more than 450 industry interviews. Brian writes on aviation, drones, cybersecurity, tech startups, cloud, data center, AI/ML/Gen AI, IoT, Blockchain etc. He achieved certifications from the EC-Council (Certified Secure Computer User) and from IBM (Basics of Cloud Computing). Apart from those, he has successfully completed many courses on Content Marketing and Business Writing. He recently achieved a Certificate in Cybersecurity (CC) from the international certification body ISC2. Follow Brian on Twitter (@creed_digital) and LinkedIn. Email Brian at: [email protected]
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